Page:United States Statutes at Large Volume 124.djvu/1544

 124 STAT. 1518 PUBLIC LAW 111–203—JULY 21, 2010 (2) PROCEDURES.—The due process requirements and other procedures under section 8(e) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)) shall apply to actions under this section as if the covered financial company were an insured depository institution and the senior executive or director were an institu- tion-affiliated party, as those terms are defined in that Act. (d) REGULATIONS.—The Corporation and the Board of Gov- ernors, in consultation with the Council, shall jointly prescribe rules or regulations to administer and carry out this section, including rules, regulations, or guidelines to further define the term senior executive for the purposes of this section. SEC. 214. PROHIBITION ON TAXPAYER FUNDING. (a) LIQUIDATION REQUIRED.—All financial companies put into receivership under this title shall be liquidated. No taxpayer funds shall be used to prevent the liquidation of any financial company under this title. (b) RECOVERY OF FUNDS.—All funds expended in the liquidation of a financial company under this title shall be recovered from the disposition of assets of such financial company, or shall be the responsibility of the financial sector, through assessments. (c) NO LOSSES TO TAXPAYERS.—Taxpayers shall bear no losses from the exercise of any authority under this title. SEC. 215. STUDY ON SECURED CREDITOR HAIRCUTS. (a) STUDY REQUIRED.—The Council shall conduct a study evalu- ating the importance of maximizing United States taxpayer protec- tions and promoting market discipline with respect to the treatment of fully secured creditors in the utilization of the orderly liquidation authority authorized by this Act. In carrying out such study, the Council shall— (1) not be prejudicial to current or past laws or regulations with respect to secured creditor treatment in a resolution process; (2) study the similarities and differences between the reso- lution mechanisms authorized by the Bankruptcy Code, the Federal Deposit Insurance Corporation Improvement Act of 1991, and the orderly liquidation authority authorized by this Act; (3) determine how various secured creditors are treated in such resolution mechanisms and examine how a haircut (of various degrees) on secured creditors could improve market discipline and protect taxpayers; (4) compare the benefits and dynamics of prudent lending practices by depository institutions in secured loans for con- sumers and small businesses to the lending practices of secured creditors to large, interconnected financial firms; (5) consider whether credit differs according to different types of collateral and different terms and timing of the exten- sion of credit; amd (6) include an examination of stakeholders who were unsecured or under-collateralized and seek collateral when a firm is failing, and the impact that such behavior has on financial stability and an orderly resolution that protects tax- payers if the firm fails. (b) REPORT.—Not later than the end of the 1-year period begin- ning on the date of enactment of this Act, the Council shall issue a report to the Congress containing all findings and conclusions 12 USC 5394. Applicability.